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Mar 31
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Pennon Q3 2025 Earnings Report
Pennon reported a statutory loss in Q4 as rising costs and investment impacted profitability, while preparing for a stronger FY 2025/26.
Key Takeaways
Pennon Group ended Q4 2024/25 with a statutory loss amid increased capital expenditures and restructuring costs. Revenue increased year-over-year due to the full-year inclusion of SES Water. The Group remains focused on investment-led growth with a strong liquidity position and gearing maintained at a stable level.
Revenue for the year reached £1,047.8 million, up from £907.8 million.
Statutory loss before tax widened to £72.7 million, primarily due to water quality event and restructuring charges.
Adjusted EPS fell to -10.3p while basic EPS was -16.1p.
Group capital expenditure remained high at £652.5 million to support infrastructure upgrades and investment.
Pennon
Pennon
Forward Guidance
Pennon anticipates a return to profitability in 2025/26 driven by higher revenue, improved operational efficiency, and the continued execution of its investment programme.
Positive Outlook
- Expected EBITDA growth of two-thirds in FY 2025/26
- No water restrictions predicted despite dry weather
- Major infrastructure projects like new reservoirs underway
- Continued reduction in storm overflows and sewer flooding
- Strong liquidity of approximately £1 billion supports future investment
Challenges Ahead
- Higher finance costs due to increased capital expenditure
- Profitability impacted by water quality incidents
- Ongoing inflationary pressures on operating costs
- Customer bills rising for the first time in a decade
- Challenges in maintaining performance metrics across all areas